SAP Knowledge Base Article - Public

1666424 - Error Message: DD/MM/YYYY to DD/MM/YYYY; Cost Center A must be below a Business Residence. It is also possible to flag both definitions on the same org unit


When you try to Activate an Org Structure, system throws below error message:

DD/MM/YYYY to DD/MM/YYYY; Cost center A must be below a Business Residence. It is also possible to flag both definitions on the same org unit


SAP Business ByDesign

Reproducing the Issue

1. Go to the Organizational management work center.

2. Select Edit Org Structures  link under Common Tasks.

3. Highlight the Org Structure.

4. Select Activate button and choose Activate All option.


There are different causes that lead to this error message:


If you try to maintain a deviating Business Residence for an org unit which is Company A and the Business Residence B that you are trying to assign is Company B. Then as per generic rule there will never be a Business Residence found.

The fact that a deviation is maintained is meaningless. In fact, the chosen organization modeling violates the best practices given in the documentation because Company and Business Residence are on the same node.

The generic rule is that a Business Residences are always below a Company and belong to exactly one Company.


In principle, A cost center must have a business Residence either on that Cost Center or above it.

If you have a Cost Center attribute assigned to an Org Unit then it is mandatory to have a Business Residence either in that Org Unit or any of its Superordinate Org Units.


Seldom there is no problem about Cost Center itself and there is also a valid Business Residence assigned to it, but the error still happens.

The reason may be that one or some of the Superordinate Org Units of this Cost Center is not valid during the period DD/MM/YYYY to DD/MM/YYYY. For example, the Superordinate Profit Center is not valid during the period while the Cost Center has the definition as Profit Center itself, the system will pass the Profit Center check and propose a Business Residences error.



You have to either flag Company A also as a Business Residence (even if it has the same address, it has to have its own Business residence because a Business residence is always part of a Company and cannot be reused between companies) Or, Introduce a level below Company A which is the Business Residence (so separate the Company from the rest) this would fulfill the best practices.


The system works as designed.

To resolve the issue, follow the below steps:

  1. Go to Organizational Management work center.
  2. Select Edit Org Structures.
  3. Set the Effective From date as DD/MM/YYYY (Note: this date should be equal to the Valid From date of the Cost Center).
  4. Search and highlight the Org Unit XYZ or its higher level org unit.
  5. Go to Definitions tab.
  6. Check the Business Residence option.


Please make sure that all the Superordinate Org Units are valid from DD/MM/YYYY to DD/MM/YYYY. If there is any Superordinate Org Unit unvalid, please first activate that Superordinate Org Unit and then activate the issued Cost Center.

See Also

You can also refer the Knowledge Base document:

1538493 - Error "DD/MM/YYYY to DD/MM/YYYY; Cost center XYZ must be below a Business Residence. It is also possible to flag both definitions on the same org Unit. “ while Checking an Org Structure


Activate, Org Unit, Org Structure, Cost center, must be below a Business Residence, It is also possible to flag both definitions on the same org unit. , KBA , SRD-MD-OM , Organizational Management , Product Enhancement


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